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Dáil Éireann debate -
Tuesday, 9 Feb 1971

Vol. 251 No. 6

Committee on Finance. - Private Members' Business. Differential Rents: Motion (Resumed).

Debate resumed on the following motion:
That Dáil Éireann calls on the Government to undertake an immediate examination of the system of differential rents, particularly relation to the hardship and injustices caused by the implementation of the B scale in Dublin.
—(Deputy O'Connell).

Those Deputies who have spoken on this motion are completely out of touch with the situation which exists. Whatever rent structure is employed it will not be perfect. During the years I served on Dublin Corporation a series of motions were placed before the corporation asking for modifications to be made to the existing system.

The differential rent system was introduced by Dublin Corporation in 1950 and ratified by the Minister for Local Government, who was a member of the coalition Government. It was found difficult to modify and change the system once it was established. The system has been condemned by Deputy Dr. Browne who speaks in a different tone from other members of the Labour Party. He is against this system although he tolerates it, but other Members of the Labour Party have different views.

The differential rent system ensures that families with low incomes or no incomes have accommodation as good as those in receipt of larger incomes. In my time I have placed five resolutions before Dublin Corporation asking them to modify this scheme. I did this because I was aware that there were injustices in some cases. These motions were continually defeated by the Labour Party and the Fine Gael Party who had the majority at that time. This shows that at a time when modification could have taken place no modification did take place. The manager indicated that if the system of differential rents were modified the pool of finances which he received from the existing system would be reduced and increases would have to be made to offset these reductions. Members of the council failed to have the matter fully examined because they felt there would be increases in some sections. However, concessions, which were not reductions, were given in certain cases but there was no alteration in the structure, and people are now saying something is wrong with the system.

An attempt is being made here to have the entire rents structure re-examined so as to bring about a situation where the flat rate tenants and the A scale differential rent tenants will have their rents modified and, indeed, substantially increased. I want the Minister to ensure that those people who contracted on a flat rent basis with the corporation many years ago will not have their rents altered because of modifications in either the differential rent system or the flat rent system. These people have paid the increases sought by the city manager and authorised by the Minister. These were legitimate increases for repairs and other factors which were taken into consideration at the time.

Some people seem to think that those living in Drimnagh, Ballyfermot, Cabra and Kimmage are paying rents which are too low. These people have long standing agreements and I would ask the Minister to ensure that these agreements, which have been in operation for many years, will not be altered in any way by any motion in this House. I would ask furthermore that the A scale tenants who have paid A scale rents when, at times, it was difficult to pay them, should not have these rents altered. I would not like to see a rehash of the rent structure of corporation houses because I feel an injustice would be done to people who have paid their way over the years.

It has been suggested that the entire system of differential rents should be altered. The question of rent assessment has also been brought up. It may be that local authority officials and local authorities themselves are not offering the best service for reporting alterations in incomes. I suggested, as did many other members of the city council, that local inquiry offices be established to deal not only with problems of differential rents but with problems of repairs and other matters related to the local authority and to the health authority. I suggested that these offices at which inquiries could be made without bringing people into the centre of the city should be established certainly in the larger built-up areas. There is an attempt now to establish offices in some areas but the local authority organisation would benefit very much from the establishment of more of these offices. There are difficulties if people must travel to the centre of the city to have a quick assessment made.

On the other hand, assessments are not made on the basis suggested by some speakers. A person who wants to have his rent altered at shorter periods than the yearly period can have that facility from Dublin Corporation. If he opts to have his rent assessed on a quarterly basis that indicates that he is prepared to submit on a quarterly basis the necessary forms required for any alteration in the assessment. I have heard no complaint from people who wanted their rent altered and who opted to have it altered on a three-monthly basis, a six-monthly basis or even on a monthly basis. I have not heard that they had any difficulty in getting this facility and they had no objection to presenting themselves with the necessary documentation to support their claims. One speaker said that people are dragged down to the rent office in Jervis Street. This is completely erroneous. The staff in Jervis Street are courteous and efficient. Sometimes they make mistakes, like all of us, but on the whole they do a reasonably good job and treat people with courtesy. Some people are difficult to deal with; some officials are difficult to deal with.

Quite right.

We accept that there are difficulties on both sides and a reluctance sometimes on one side not to divulge the full facts. On some occasions the corporation officials are in possession of facts about which the tenant thinks they are ignorant. For that reason there may be confusion and there may be complaints made which cannot stand up to examination.

The question of rents has been confused with the addition for central heating. Central heating is separate from the rent assessment. If central heating were not there the tenants themselves would have to heat their flats and provide the necessary warmth for their families and themselves, possibly at a greater cost than that which the corporation charge.

Where central heating is not provided one finds cold dwellings where the people fail to live up to their responsibilities and the unfortunate children have to spend many hours in misery. This does not happen in the modern accommodation provided by the corporation. There is an inclusive charge. It is no greater than the tenants would have to pay in order to heat their homes. The fact that the children have these facilities has been praised by tenants who have come from dismal unheated dwellings. People who have suffered in unheated dwellings can see that their children are able to study as they were not able to do in the past. They have no objection whatever to paying for the heat. It has been mentioned that heating is not available all the year round. It is true that there is an off period, but during the off period hot water and other facilities are available. It is all costed on a yearly basis and then there is a weekly contribution fixed for heating. It may happen in time that central boiler houses will be discontinued and individuals may be able to regulate their own central heating as is the case in some corporation dwellings.

There has been much confusion in what has been said in relation to family income, rent assessment and the officials of the corporation. In many cases these officials, who are doing a good job in difficult circumstances, have been subjected to severe criticism here. I have made it my business in recent times to go into the corporation. I have seen the way they have reconstructed the section which deals with differential rent assessments and people have complete privacy and are given every chance to explain their cases fully. Anyone who would accuse the officials of the corporation of harassing the people at this stage is not being fair. These people are employed by the corporation to do a job and there is no reason why there should be such criticism of them. Far too much criticism has been levelled against Irish workers and local authority workers from time to time without further criticism now being levelled by some members of the Labour Party against Dublin corporation employees. It is deplorable that this particular type of criticism—criticism of their fellow workers—should come from members of the Labour Party.

Some of the problems arise from the attitude of the people who are seeking assessment. Perhaps they misunderstand the situation. Perhaps the corporation have not provided the necessary material to indicate when and how their rents can be changed. Change is certainly necessary in some aspects of the rents office. Possibly the introduction of a tenants' handbook would eliminate some of the misunderstanding, and much of it is misunderstanding, in relation to incomes.

There is the question of the concealment of income. Responsible tenants will always indicate that if everyone paid his fair share there would be no problems. They know that there are many people who are not fully meeting their responsibilities and so it falls on other people to subsidise them. If everyone in a corporation dwelling met his responsibilities I am sure all the tenants would be satisfied and possibly might have their rents reduced.

I visited Ballymun some time ago with the Minister when he examined the flats and examined the complaints which he had received here in the House. He discussed the rent situation with the tenants there. The tenants fully accepted the situation except for the fact that they felt there were people on the same landing as themselves who were not fully meeting their responsibilities but who had a better income than they had. Wherever there is a differential rent system it causes discontent when people know that their neighbour is getting away with something. The only way this can be rectified is by having further inquiries made by additional inquiry officers. I do not suggest we should have more inquiry officers but I do feel that when everyone meets his responsibilities there will be a better climate among the tenants and less of the distrust which exists at the moment.

It is unfortunate that a small section is causing discontent and there is discontent among certain tenants but it is not for the reasons stated by members of the Opposition. It is difficult to pick out each particular injustice and there are possibly injustices within any system but the corporation have gone a long way to remedy them. There has been no major change in the scheme but nevertheless there has been a suggestion going throughout the city that certain people here want to see a complete reorganisation of the rental structure. They want to see the rent of the flat rent tenants increased.

There are many of these flat rent tenants in my area and I want to ensure here and now that flat rent tenants will not be disturbed because over the years they met their responsibilities in full. They are good tenants. Many of them have since purchased their own houses. Some are not in that fortunate position and are still availing of this rent structure on which they have paid for so long. Many of them entered the houses in the early thirties at a time when it was difficult to meet the rental requirement, low as it was. The same thing applies to the A scale tenants in the Drimnagh and Ballyfermot area. I want to ensure also that their rent structure will not be altered. It is the stated desire of the city manager that an alteration in the rent structure must yield the same amount when concessions are given. While he will take it off one section, he will add it on somewhere else.

If an authority are operating on the basis that certain works must be carried out and certain things must be done, then they require a certain amount of money. If any section of the tenants are to suffer as a result of pressure being brought by a Labour Party resolution, the Minister will have a number of other Deputies to deal with in this House. I would ask him to ensure that the Labour Party motion will not be accepted and that, if alterations are necessary in the rent structure, the local authority will deal with them on a realistic basis.

When I was a member of a local authority I put down a number of motions on differential rents because at that time the rent structure in the Ballyfermot and Drimnagh areas was high in comparison with the flat rent scale that was in operation in other areas. I did not get much support from some of the people who are loud now in their condemnation of the system. As I said, the system was introduced by the Labour Party in Dublin Corporation and whatever ills or disturbances have flowed from it are their responsibility.

I am calling the concluding speaker from the Labour benches.

On a point of explanation, I will not be a second——

Provided we still get 15 minutes to reply.

Arising out of Deputy Dowling's contribution——

We are not giving the Minister time. We still want 15 minutes to reply.

The Deputy will get 15 minutes.

I should like to explain that last week I made an arrangement with the city manager, who agreed in principle, for the establishment of a special office in Ballymun and to have an officer in attendance there at times during the day and also between 7 and 9 o'clock at night to enable tenants to come and discuss rent matters, and particularly assessments of rent. The office will provide a service to the tenants which will not be confined to rent matters. It will cover other matters which arise and for which the corporation are responsible. This is being done as a pilot project and, if it is found to be successful, we can consider extending this type of service further throughout the city to the large housing areas. I hope that the establishment of this office will help to eliminate some of the misunderstandings and misconceptions which have arisen in relation to rent matters and that it will help tenants to understand more fully their own rights and, indeed, their responsibilities in relation to the tenancies of these corporation houses.

Will it save them any money apart from bus fares?

One of the difficulties, as has come out quite clearly——(Interruptions.)

I do not like to interrupt the Minister but Private Members' Time has been very limited for the Opposition. We have no objection to the Minister making any statement he likes with your permission but we want to ensure that he is not encroaching on Private Members' Time.

Mr. J. Lenehan

Are you acting the goat?

You do not have to act.

I am surprised at the attitude of the Labour Party. I thought they would be interested in the statement I made.

It is unusual. Usually the Minister makes statements at Fianna Fáil dinners.

I want to raise a few points in reply to this motion. The Minister said that he was not personally aware of any burning hardship. He also said that the fears of the tenants are false and are based on rumour. There were protests parades, public meetings, demonstrations, the withholding of rents and rates in Dublin, Waterford, Limerick, Cork, Youghal, Midleton, Fermoy, Drogheda, Dundalk, Wexford, Cavan, Kilkenny and other areas, and how can the Minister in all honesty say the people are satisfied?

At the annual general meeting of the National Association of Tenants' Organisation, there was unanimous agreement in condemning the system of differential rents which has operated since the enactment of the Housing Act, 1966. There were 70 tenant associations from all parts of Ireland represented at that meeting. Where does the Minister get the assurance that the tenants are satisfied with the scheme? I think the Minister is being less than honest.

There is no injustice or hardship.

I am now in possession.

I would be quite concerned if there were.

The trouble stems from the Housing Act of 1966. The Minister said that in cases where it can be proved that hardship is suffered he will eliminate that hardship, but he has dismissed the valid grievances of these tenants who were represented by their organisations.

The Cork city manager was very honest when he said that he was satisfied that these charges can inflict hardship on families in these areas. He also said that the abatements suggested will, to some extent, alleviate this hardship. I suggest that the Minister should get the views of other local authority managers on the existence of hardship, hardship which he says does not exist.

At the commencement of the debate on this motion I said—and the Minister very wisely chose to ignore it—that the manager and the Minister have the ultimate decision in the introduction of a differential rent system and the elected representatives have no power to alter the decision. The Minister made no comment on that. I said they could increase the rent each year and ignore the elected representatives. The manager has power to revise the maximum and minimum scheme whenever he thinks fit. Therefore, if a tenant goes in on an agreement, it is a one-sided contract. They can revise, or alter, or increase it, and the tenant has no say in the matter. Such an agreement is not a contract when it can be altered without the tenant's permission.

Every member of the family is assessed for rent purposes. If a son or daughter has more money coming in than the father he or she is technically the tenant. The assessment for overtime, bonus, shift work, is double taxation. They are taxed under PAYE and they are also taxed by Dublin Corporation. This is doubly unfair. The Minister said the rent can be as low as 1s to 5s, but I say this is farcical. I challenge him to produce one receipt for 1s to 5s from a Dublin Corporation tenant, even one receipt.

Mr. J. Lenehan

I will give it to the Deputy.

Tenants have rights in regard to inter-transfers but they are being ignored by local authorities. A tenant has a right to an inter-transfer if he feels like it but, unless that inter-transfer is approved by the city medical officer because of severe overcrowding or on medical grounds, they both go on the new scale. Deputy Dowling's contention is fallacious in circumstances like that. He says no one on a fixed income can be on a differential rent. That is a lie. I can prove where a man, blind, deaf, senile, who was convinced that he should go on a differential rent——

Mr. J. Lenehan

It must be very easy to prove it if the Deputy can prove it.

Would Deputy Lenehan cease interrupting?

The Gestapo forces are being employed to check with neighbours. It is nothing short of the Gestapo methods used during the Hitler regime. It is a disgrace and that is why we want a revision. I have seen cases of attempted suicide because women were afraid to face those people. "Bring down the husbands," they say. I have shown the grievances and I think there is sufficient to warrant an investigation. Here is a Minister who has shown himself to be progressive. He has not been a Minister for very long but from the beginning he has said he has taken an interest in differential rents. We in the Labour Party ask him not to put this to a vote. Let him say, "There are grounds for it; let us have an independent inquiry."

Deputy Dowling knows quite well there are dissatisfied tenants. The Minister says that if I can show him half a dozen cases he will act on it. I can point out 50 cases. I am asking him to set up an investigation. To that investigation should be called representatives of the tenants, the social workers involved in these arrears of rent, inter-transfer cases, sociologists, all the other people involved. It would not cost a lot of money.

I had a letter from Dublin Corporation today which stated that the A Scale applied originally after 1966 to houses let on or after 1961. That was changed in 1967 and the corporation then said that the B Scale, the really rough scale, would be applied to houses let after 1954. The people are dissatisfied and they are entitled to some satisfaction. If, after investigation, it can be shown that nothing is wrong, I will be satisfied. At the moment, however, I ask the Minister to say: "Look, I will examine this; we will set up an independent body to examine all aspects of it to see what can be done to remedy any injustices." I have shown that there are injustices and I suggest that the Minister, a progressive man, should be most anxious to remedy them.

Question put.
The Dáil divided: Tá, 34; Níl, 55.

  • Barry, Richard.
  • Belton, Luke.
  • Belton, Paddy.
  • Browne, Noël.
  • Bruton, John.
  • Clinton, Mark A.
  • Cluskey, Frank.
  • Corish, Brendan.
  • Cosgrave, Liam.
  • Coughlan, Stephen.
  • Creed, Donal.
  • Crotty, Kieran.
  • Cruise-O'Brien, Conor.
  • Desmond, Barry.
  • Donnellan, John.
  • Finn, Martin.
  • Fitzpatrick, Tom (Cavan).
  • Hogan O'Higgins, Brigid.
  • Jones, Denis F.
  • Kavanagh, Liam.
  • Kenny, Henry.
  • McMahon, Lawrence.
  • Malone, Patrick.
  • O'Connell, John F.
  • O'Donnell, Tom.
  • O'Donovan, John.
  • O'Hara, Thomas.
  • O'Higgins, Thomas F.
  • O'Leary, Michael.
  • Pattison, Séamus.
  • Ryan, Richie.
  • Spring, Dan.
  • Thornley, David.
  • Tully, James.

Níl

  • Aiken, Frank.
  • Andrews, David.
  • Boylan, Terence.
  • Brady, Philip A.
  • Brennan, Joseph.
  • Brennan, Paudge.
  • Browne, Patrick.
  • Browne, Seán.
  • Burke, Patrick J.
  • Carter, Frank.
  • Childers, Erskine.
  • Colley, George.
  • Collins, Gerard.
  • Connolly, Gerard C.
  • Cowen, Bernard.
  • Cronin, Jerry.
  • Crowley, Flor.
  • Cunningham, Liam.
  • de Valera, Vivion.
  • Dowling, Joe.
  • Faulkner, Pádraig.
  • Fitzpatrick, Tom (Dublin Central).
  • Flanagan, Seán.
  • Foley, Desmond.
  • Forde, Paddy.
  • French, Seán.
  • Gallagher, James.
  • Geoghegan, John.
  • Gibbons, James.
  • Healy, Augustine A.
  • Herbert, Michael.
  • Hillery, Patrick J.
  • Hilliard, Michael.
  • Hussey, Thomas.
  • Kenneally, William.
  • Kitt, Michael F.
  • Lalor, Patrick J.
  • Lemass, Noel T.
  • Lenehan, Joseph.
  • Lynch, Celia.
  • Lynch, John.
  • McEllistrim, Thomas.
  • Meaney, Thomas.
  • Molloy, Robert.
  • Moore, Seán.
  • Noonan, Michael.
  • O'Kennedy, Michael.
  • O'Leary, John.
  • O'Malley, Des.
  • Power, Patrick.
  • Sherwin, Seán
  • Smith, Michael.
  • Smith, Patrick.
  • Timmons, Eugene.
  • Wyse, Pearse.
Tellers:— Tá: Deputies Cluskey and Kavanagh; Níl: Deputies Andrews and S. Browne.
Question declared lost.

I wonder what reply the Taoiseach will give to the Fianna Fáil Ard Fheis on the question of differential rents?

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